by Fronetics | May 28, 2015 | Blog, Leadership, Strategy, Supply Chain, Talent
Cathy Morris, senior vice president and chief strategy officer for Arrow Electronics, Inc., talks women in the supply chain and offers up career advice
Men hold 95% of top level supply chain positions within Fortune 500 companies. Outside the corner office things aren’t much better; between 70% and 80% of positions within the supply chain industry are held by men. Cathy Morris, senior vice president and chief strategy officer for Arrow Electronics, Inc., defies these statistics. Morris discusses her career and the gender gap in an interview:
Only a small percentage of top level positions in Fortune 500 companies are held by women. Within the supply chain industry this percentage is even smaller. How did you get to where you are today?
I’d like to say that I chose the supply chain, but the reality is that I stumbled into it. I was working in finance as a corporate controller when the company for whom I was working was purchased by Arrow. My position was eliminated; however, an individual within Arrow came to me and suggested that I stay with the company albeit in a different department. He suggested that I take my practical experience in finance and my expertise in making businesses better and “do something different.” I did do something different – I went from being a corporate controller to running a series of warehouses.
Products can be made, money can be invested, ideas can be brought to fruition, but without the supply chain everything stops. The supply chain provides routes to market; everything hinges on an effective supply chain.
I decided I need to identify what I needed to know so that I could sit at the table. I invested between 12 and 18 months in roles, from logistics to sales, throughout the company. When I started each role I identified what I could learn from the role, what I could contribute, and what milestone I could attain.
As one of the few women in the supply chain and one of the few women in an executive position what challenges have you experienced?
While I have had incredible mentors few have been women. There are, as you said, not a lot of women at the table. I would say that 90% of the time I am the only woman in the room.
What can women who are in the supply chain do to support each other and how can the supply chain attract more women to the field?
It is the responsibility of women to invest in each other and to help each other. This is important in building a better organization. A better organization is not about the numerical statistics related to diversity. A better organization is about better decision-making. Diversity is essential for companies; diversity enables better decision making and diminishes group think.
Change starts from the top down. If you are interviewing for a position and everyone is of the same gender and race, be bold – ask if inclusion is a top priority for the company. Ask what the company is doing to increase diversity.
The supply chain needs to be rebranded. The perception is that when you work within the supply chain you are a second class citizen. The reality is that in the absence of an effective supply chain the entire value proposition of a Company falls apart. This is what we need to get out there.
What career advice can you offer?
Every career decision you make needs to reflect your personal goals; focus on the culture of company and how the position will enable you in your career.
When you leave a job it needs to be for a purpose. You should never leave a job because you don’t like it, rather you should leave a job because you have achieved what you set out to do within that job.
If you don’t like your job, sit back and assess why you don’t like. When you determine this, change what you don’t like about the job.
One of the most common reasons people leave their job is because they don’t like their boss. This is not a reason to leave. Bad bosses provide more learning than good bosses. With bad bosses you learn what not to do – this is invaluable.
You manage your own career. As long as you continue to manage your career you will be happy. Once you stop managing it, you’ll be unhappy.
Cathy Morris is the senior vice president and chief strategy officer for Arrow Electronics, Inc.. Morris leads strategic initiatives for Arrow, including global merger and acquisition activity. She brings nearly 30 years of experience in the computer products and electronic components distribution industry, having previously served as president of Arrow’s enterprise computing solutions segment after holding senior positions in support service, finance and corporate development.
Prior to joining Arrow in 1994, Morris held financial leadership roles in the banking and manufacturing industries. She is a board member and chairs the audit committee for Graftech International, and she is a member of the Global Leadership Council at Colorado State University and the YWCA’s Society of Women Achievers.
In March 2015 Cathy Morris, was named to the National Diversity Council’s 2015 “Top 50 Most Powerful Women in Technology.” This is the second consecutive year Morris has been honored with this distinction.
by Fronetics | May 27, 2015 | Blog, Strategy, Supply Chain, Talent
Mickey North Rizza talks women in the supply chain
As part of our series on women in the supply chain, I spoke with Mickey North Rizza, VP, Strategic Services at BravoSolution. Mickey holds the distinction of Top Female Supply Chain Executive. She has 25 years of senior-level procurement, sourcing and supply management experience. Mickey has also been an award-winning Supply Chain analyst with Gartner and AMR Research.
How did you get your start in the supply chain industry? (Similarly, why did you choose the industry?)
This is a fun story for me. At Michigan State, I was a Delta Gamma helping out our Anchor Splash team. My mission was to find a television that a local company would donate to the winning Fraternity. And of course, it had to be the largest and best TV on the market for the day. So, I pulled out the yellow pages, started calling around and found a few companies that were willing to help but would not donate. I learned to negotiate pretty quickly. At that time my major was prelaw – and I was bored. I looked into Material’s Logistic Management – an older term for Supply Chain and chose this as my major with two concentrations – Purchasing and Operations. The rest is as they say, history. Thank goodness Purchasing has evolved, as negotiating is just a minute portion, but for this young adult it made all the difference.
How did you get to where you are today?
I put in long career hours, learning everything I could from so many. My thirst for knowledge is still vast and that keeps me going and enjoying what I do. I also had some great mentors and some not so good leaders and coworkers. All of these individuals have taught me lessons in the business world – good and bad. I firmly believe that everyone has something to teach us – we just need to listen, process and apply it. Sometimes we internalize the lessons we learn and others we let go – but all are learning experiences for ourselves. In the analyst world we called it triangulation – someone can always use the knowledge you have gained and they in turn can impart knowledge to you – though you must listen to learn.
My mentors were the CEOs, CFOs, CIOs, Division Presidents, CPOs, Supply Chain Leaders, Business Unit leads, General Managers, Editors, Analysts, Marketing and Sales professionals and, yes, even many of the suppliers and vendors I have worked closely with over the years. Each has given me a reason to pause and consider at a particular point in time and that has somehow enhanced my career.
Lastly, I have a strong, close immediate family. My grandparents and parents set a great work example early. My parents continue to be a source of inspiration for me. My sister is an amazing woman in Technology and Consulting and a constant source of ideas as I listen to her stories. My husband, while in a very different profession, is awesome – he listens, coaches and gives me strength to achieve even more than I did yesterday. And lastly, Delta Gamma has taught me to be the best I can be, all the time and in every way possible.
Who do you see as leaders (female) within the supply chain industry?
I have broken up the leaders in a few categories because I think it is helpful in terms of their leadership and current positions.
Marketing
- Andrea Brody, BravoSolution
- Christine Crandell, New Business Strategies
- Elaine Benfield, Ariba/SAP
- Allison Crawford, Supply Chain Insights
Analysts
- Lora Cecere, Supply Chain Insights
- Noha Tohamy, Gartner
- Dana Stiffler, Gartner
- Maggie Slowick, Procurement Leaders
Procurement
- Lisa Martin, Teva Pharmaceuticals
- Stephanie Sklar Financial Services
- Cynthia Dautrich, Kimberly Clark
- Cathy Herr, Eli Lilly
Risk
- Jessica Sanchez, CR Bard
- Rose Kelly-Falls, Rapid Ratings
- Edna Conway, Cisco Systems
Supply Chain
- Linda Santus Topping, Colgate
- Stacey Lallier, J&J
- Kate Vitasek, University of Tennessee
What opportunities do you see for women in the supply chain?
The opportunity is vast. As more and more companies outsource, the supply chains become more complex. The complexity means that great technology becomes even more critical to ensure proper visibility, actionable solutions and knowledge management. Rolling this all together requires the soft skills of managing relationships internally as well as externally with our partners, the industry and also to manage the messages to the market. While business has traditionally been a man’s world, more and more women are now in businesses. Most women by nature have been relationship builders. They encourage, collaborate and innovate with others for the best outcome. It is only natural that these tendencies gravitate to the business world and most importantly into Supply Chain.
Challenges?
The challenges for women remain the same – breaking into the man’s world. While many women have done it, to be really successful women need to utilize some of the components of Lean In! In addition, women must be comfortable staking a claim on their position, working from this position as a leader and a coworker so that the company can achieve it greatest results. In many cases I know I have worked just as hard if not more so than my male coworkers, but I have also come to appreciate the lessons these men have taught me – work smarter, not harder; give it your all and expect perfection; take risks – never be afraid to fail because it is in failure you learn your greatest lesson and can apply it in the future; and always believe in yourself.
A final thought here is that we all can’t be perfect, but we can expect the best, believe in the best, give our best and achieve excellence. But you have to DO IT!
Any advice for women considering the supply chain?
Yes, go for it! The Supply Chain world needs you! Look at University programs such as Michigan State, Penn State, Rutgers, University of Texas, Arizona State University are just a few of a huge laundry list that ISM has on their website. In addition, groups like CSCMP, Procurement Leaders, ISM, SIG and many others offer continuing education courses to enhance your knowledge of Supply Chain. And for those that like to read, there are many great books out there (I am happy to supply a few of my favorites).
Any advice for the industry itself?
Yes, embrace women in Supply Chain. Their abilities are superb and when you select the right one, she can bring your company greater value than ever imagined. But you must watch, listen, learn, coach and offer opportunities to excel. And lastly, be a mentor to those that have a spark, work hard and apply themselves to make a difference. Man or woman, the Supply Chain of the future depends upon the perfect mix of talent. And as we know, Supply Chain talent is experiencing a shortage.
Mickey North Rizza is VP, Strategic Services at BravoSolution, assisting clients to bring & deliver more impactful value in Procurement, Sourcing and Supplier Relationship Management. She developed the first Procurement alignment tool, called BravoAlign that has aided many clients on their supply management excellence journey.
Prior to joining BravoSolution, Mickey was a Research Director for the Procurement and Sourcing practice of the Supply Chain Team at Gartner and AMR Research. She was an award winning supply chain analyst during her 7 year tenure and is still a highly popular thought leader and speaker in Supply Management.
Prior to becoming an analyst Mickey was a practitioner for 22 years. Her practitioner career includes Moduslink Corporation, where she held the positions of Vice President of Global Supply Base Management and Director of Procurement and Sourcing. At Moduslink, she was responsible for implementing strategic sourcing programs, driving strategic positioning of procurement and materials in Europe and the Americas, and introducing new procurement technology.
Mickey also worked as a Materials Manager at M/A-Com, Inc. a division of Tyco International. While at M/A-Com, Mickey developed and implemented strategic procurement plans and integrated roadmaps to accompany a supply chain model. In addition, she introduced a pilot manufacturing resource management system.
During her career, Mickey also worked as a Purchasing Manager at Advanced Techcom, Inc., Innova Corporation and Motorola; and was also a buyer & sourcing agent at AM General, a division of LTV Missiles and Electronics and Grumman Olson.
Mickey is a member of the Institute for Supply ManagementTM. She is a founding member of the ISM Supply Chain Risk Management Group, which she chairs for 2015. She was voted Top Female Supply Chain Executive 2013. Mickey is an active nonprofit volunteer with her work at ISM, as a Delta Gamma Foundation Trustee and Secretary (2006-2009) and her past board work with Lowell’s Boat Shop in her home town of Amesbury, MA.
Mickey earned a B.A. in Materials Logistic Management from Michigan State University.
by Fronetics | May 27, 2015 | Blog, Strategy, Supply Chain, Talent
Mickey North Rizza talks women in the supply chain
As part of our series on women in the supply chain, I spoke with Mickey North Rizza, VP, Strategic Services at BravoSolution. Mickey holds the distinction of Top Female Supply Chain Executive. She has 25 years of senior-level procurement, sourcing and supply management experience. Mickey has also been an award-winning Supply Chain analyst with Gartner and AMR Research.
How did you get your start in the supply chain industry? (Similarly, why did you choose the industry?)
This is a fun story for me. At Michigan State, I was a Delta Gamma helping out our Anchor Splash team. My mission was to find a television that a local company would donate to the winning Fraternity. And of course, it had to be the largest and best TV on the market for the day. So, I pulled out the yellow pages, started calling around and found a few companies that were willing to help but would not donate. I learned to negotiate pretty quickly. At that time my major was prelaw – and I was bored. I looked into Material’s Logistic Management – an older term for Supply Chain and chose this as my major with two concentrations – Purchasing and Operations. The rest is as they say, history. Thank goodness Purchasing has evolved, as negotiating is just a minute portion, but for this young adult it made all the difference.
How did you get to where you are today?
I put in long career hours, learning everything I could from so many. My thirst for knowledge is still vast and that keeps me going and enjoying what I do. I also had some great mentors and some not so good leaders and coworkers. All of these individuals have taught me lessons in the business world – good and bad. I firmly believe that everyone has something to teach us – we just need to listen, process and apply it. Sometimes we internalize the lessons we learn and others we let go – but all are learning experiences for ourselves. In the analyst world we called it triangulation – someone can always use the knowledge you have gained and they in turn can impart knowledge to you – though you must listen to learn.
My mentors were the CEOs, CFOs, CIOs, Division Presidents, CPOs, Supply Chain Leaders, Business Unit leads, General Managers, Editors, Analysts, Marketing and Sales professionals and, yes, even many of the suppliers and vendors I have worked closely with over the years. Each has given me a reason to pause and consider at a particular point in time and that has somehow enhanced my career.
Lastly, I have a strong, close immediate family. My grandparents and parents set a great work example early. My parents continue to be a source of inspiration for me. My sister is an amazing woman in Technology and Consulting and a constant source of ideas as I listen to her stories. My husband, while in a very different profession, is awesome – he listens, coaches and gives me strength to achieve even more than I did yesterday. And lastly, Delta Gamma has taught me to be the best I can be, all the time and in every way possible.
Who do you see as leaders (female) within the supply chain industry?
I have broken up the leaders in a few categories because I think it is helpful in terms of their leadership and current positions.
Marketing
- Andrea Brody, BravoSolution
- Christine Crandell, New Business Strategies
- Elaine Benfield, Ariba/SAP
- Allison Crawford, Supply Chain Insights
Analysts
- Lora Cecere, Supply Chain Insights
- Noha Tohamy, Gartner
- Dana Stiffler, Gartner
- Maggie Slowick, Procurement Leaders
Procurement
- Lisa Martin, Teva Pharmaceuticals
- Stephanie Sklar Financial Services
- Cynthia Dautrich, Kimberly Clark
- Cathy Herr, Eli Lilly
Risk
- Jessica Sanchez, CR Bard
- Rose Kelly-Falls, Rapid Ratings
- Edna Conway, Cisco Systems
Supply Chain
- Linda Santus Topping, Colgate
- Stacey Lallier, J&J
- Kate Vitasek, University of Tennessee
What opportunities do you see for women in the supply chain?
The opportunity is vast. As more and more companies outsource, the supply chains become more complex. The complexity means that great technology becomes even more critical to ensure proper visibility, actionable solutions and knowledge management. Rolling this all together requires the soft skills of managing relationships internally as well as externally with our partners, the industry and also to manage the messages to the market. While business has traditionally been a man’s world, more and more women are now in businesses. Most women by nature have been relationship builders. They encourage, collaborate and innovate with others for the best outcome. It is only natural that these tendencies gravitate to the business world and most importantly into Supply Chain.
Challenges?
The challenges for women remain the same – breaking into the man’s world. While many women have done it, to be really successful women need to utilize some of the components of Lean In! In addition, women must be comfortable staking a claim on their position, working from this position as a leader and a coworker so that the company can achieve it greatest results. In many cases I know I have worked just as hard if not more so than my male coworkers, but I have also come to appreciate the lessons these men have taught me – work smarter, not harder; give it your all and expect perfection; take risks – never be afraid to fail because it is in failure you learn your greatest lesson and can apply it in the future; and always believe in yourself.
A final thought here is that we all can’t be perfect, but we can expect the best, believe in the best, give our best and achieve excellence. But you have to DO IT!
Any advice for women considering the supply chain?
Yes, go for it! The Supply Chain world needs you! Look at University programs such as Michigan State, Penn State, Rutgers, University of Texas, Arizona State University are just a few of a huge laundry list that ISM has on their website. In addition, groups like CSCMP, Procurement Leaders, ISM, SIG and many others offer continuing education courses to enhance your knowledge of Supply Chain. And for those that like to read, there are many great books out there (I am happy to supply a few of my favorites).
Any advice for the industry itself?
Yes, embrace women in Supply Chain. Their abilities are superb and when you select the right one, she can bring your company greater value than ever imagined. But you must watch, listen, learn, coach and offer opportunities to excel. And lastly, be a mentor to those that have a spark, work hard and apply themselves to make a difference. Man or woman, the Supply Chain of the future depends upon the perfect mix of talent. And as we know, Supply Chain talent is experiencing a shortage.
Mickey North Rizza is VP, Strategic Services at BravoSolution, assisting clients to bring & deliver more impactful value in Procurement, Sourcing and Supplier Relationship Management. She developed the first Procurement alignment tool, called BravoAlign that has aided many clients on their supply management excellence journey.
Prior to joining BravoSolution, Mickey was a Research Director for the Procurement and Sourcing practice of the Supply Chain Team at Gartner and AMR Research. She was an award winning supply chain analyst during her 7 year tenure and is still a highly popular thought leader and speaker in Supply Management.
Prior to becoming an analyst Mickey was a practitioner for 22 years. Her practitioner career includes Moduslink Corporation, where she held the positions of Vice President of Global Supply Base Management and Director of Procurement and Sourcing. At Moduslink, she was responsible for implementing strategic sourcing programs, driving strategic positioning of procurement and materials in Europe and the Americas, and introducing new procurement technology.
Mickey also worked as a Materials Manager at M/A-Com, Inc. a division of Tyco International. While at M/A-Com, Mickey developed and implemented strategic procurement plans and integrated roadmaps to accompany a supply chain model. In addition, she introduced a pilot manufacturing resource management system.
During her career, Mickey also worked as a Purchasing Manager at Advanced Techcom, Inc., Innova Corporation and Motorola; and was also a buyer & sourcing agent at AM General, a division of LTV Missiles and Electronics and Grumman Olson.
Mickey is a member of the Institute for Supply ManagementTM. She is a founding member of the ISM Supply Chain Risk Management Group, which she chairs for 2015. She was voted Top Female Supply Chain Executive 2013. Mickey is an active nonprofit volunteer with her work at ISM, as a Delta Gamma Foundation Trustee and Secretary (2006-2009) and her past board work with Lowell’s Boat Shop in her home town of Amesbury, MA.
Mickey earned a B.A. in Materials Logistic Management from Michigan State University.
![The supply chain gender gap [Infographic]](https://www.fronetics.com/wp-content/uploads/2024/10/supply-chain-gender-gap.jpg)
by Fronetics | May 26, 2015 | Blog, Strategy, Supply Chain, Talent
The number of women who work full-time in the workforce is up 15% since 1979. In the manufacturing sector, the story is very different. The number of men working in the manufacturing sector has increased, while the number of women working in the sector has declined. The number of women in the sector now stands at the lowest it has been since 1971.
Looking more broadly at the supply chain industry, it is clear that there is a significant gender gap. Between 70% and 80% of positions within the supply chain industry are held by men and 95% of top level supply chain positions within Fortune 500 companies are held by men. By comparison, men hold 85% of all executive officer positions within Fortune 500 companies.
The dearth of women working, at all levels, in the supply chain is not because women do not have the skillset and ability to succeed within the industry. Women are as capable as men when it comes to working within the supply chain industry. Indeed, it has been put forth that women are better suited for roles in supply chain management than men. Research conducted by SCM World found that the majority of men (63%) and women (75%) believe that the natural skillsets of women differ from those of men and that these differences are advantageous for supply chain management. Similarly, new research by McKinsey & Company found that companies in the top quartile for gender diversity are 15%more likely to have financial returns above their respective national industry medians.
The talent gap; an opportunity
According to Supply Chain Insights 60% of companies within the supply chain industry have job openings and 51% of companies are seeing an increase in turnover of supply chain leaders. Looking ahead, there are an estimated 1.4 million new supply chain workers needed by 2018 and the Bureau of Labor and Statistics predicts that the number of logistics jobs is expected to grow by 22 percent by 2022 – nearly double the rate of other professions. The supply chain talent gap arguably presents an opportunity to increase the number of women in positions throughout the supply chain and close the gender gap. The big question is how.
Addressing the gender gap
Here are 4 ways the supply chain industry can address the gender gap:
1. Increase visibility and tackle the image problem
93% of most companies’ supply chain is invisible. This statistic could also be used to reflect the number of people who know what the supply chain industry is; few people outside of the industry know what the supply chain is and what career opportunities there are. This needs to change.
To attract new talent the industry needs to make people aware of the supply chain – what it is, the integral role it plays in business, and the various opportunities there are within the industry.
2. Rethink talent acquisition and promotion
Within the supply chain industry the typical path up the corporate ladder has started out on the shop floor. If the industry is going to attract women and new talent companies need to look not only beyond their four walls, but also outside of the industry itself. When it comes to talent acquisition smart companies focus on the qualities of the individual and what they can bring to the table.
3. Move from talk to action
Battalia Winston’s Susan Medina and Peter Gomez point out that: companies without a proactive diversity-building strategy will fall victim to common-pitfalls and will fall flat.
“It’s important to acknowledge that diversity building is a proven growth strategy, not a superficial endeavor. But paying lip service to diversity and inclusion without a proactive strategy will lead to failure. Organizations need to prioritize, collaborate, and think long term.”
4. Take control
Women tend only to apply for jobs that they feel they are a 100% match; men do so even when they meet no more than 60% of the requirements. Similarly, men tend to be promoted more often than women simply because they speak up and ask for a promotion.
Women need to take responsibility for themselves and for their own careers. Women need to apply for jobs with confidence, even when they don’t have 100% of the requirements. They also need to speak up and ask for a promotion.
Kevin O’Marah, Chief Content Officer at SCM World, sums up the issue of the supply chain gender gap nicely: “Women in supply chain are too few, and their path to the top is at least partially blocked. Yet we all seem to think they bring something to the party that will make it better. The time to break this problem down is now.”
by Fronetics | May 26, 2015 | Blog, Strategy, Supply Chain, Talent
The number of women who work full-time in the workforce is up 15% since 1979. In the manufacturing sector, the story is very different. The number of men working in the manufacturing sector has increased, while the number of women working in the sector has declined. The number of women in the sector now stands at the lowest it has been since 1971.
Looking more broadly at the supply chain industry, it is clear that there is a significant gender gap. Between 70% and 80% of positions within the supply chain industry are held by men and 95% of top level supply chain positions within Fortune 500 companies are held by men. By comparison, men hold 85% of all executive officer positions within Fortune 500 companies.
The dearth of women working, at all levels, in the supply chain is not because women do not have the skillset and ability to succeed within the industry. Women are as capable as men when it comes to working within the supply chain industry. Indeed, it has been put forth that women are better suited for roles in supply chain management than men. Research conducted by SCM World found that the majority of men (63%) and women (75%) believe that the natural skillsets of women differ from those of men and that these differences are advantageous for supply chain management. Similarly, new research by McKinsey & Company found that companies in the top quartile for gender diversity are 15%more likely to have financial returns above their respective national industry medians.
The talent gap; an opportunity
According to Supply Chain Insights 60% of companies within the supply chain industry have job openings and 51% of companies are seeing an increase in turnover of supply chain leaders. Looking ahead, there are an estimated 1.4 million new supply chain workers needed by 2018 and the Bureau of Labor and Statistics predicts that the number of logistics jobs is expected to grow by 22 percent by 2022 – nearly double the rate of other professions. The supply chain talent gap arguably presents an opportunity to increase the number of women in positions throughout the supply chain and close the gender gap. The big question is how.
Addressing the gender gap
Here are 4 ways the supply chain industry can address the gender gap:
1. Increase visibility and tackle the image problem
93% of most companies’ supply chain is invisible. This statistic could also be used to reflect the number of people who know what the supply chain industry is; few people outside of the industry know what the supply chain is and what career opportunities there are. This needs to change.
To attract new talent the industry needs to make people aware of the supply chain – what it is, the integral role it plays in business, and the various opportunities there are within the industry.
2. Rethink talent acquisition and promotion
Within the supply chain industry the typical path up the corporate ladder has started out on the shop floor. If the industry is going to attract women and new talent companies need to look not only beyond their four walls, but also outside of the industry itself. When it comes to talent acquisition smart companies focus on the qualities of the individual and what they can bring to the table.
3. Move from talk to action
Battalia Winston’s Susan Medina and Peter Gomez point out that: companies without a proactive diversity-building strategy will fall victim to common-pitfalls and will fall flat.
“It’s important to acknowledge that diversity building is a proven growth strategy, not a superficial endeavor. But paying lip service to diversity and inclusion without a proactive strategy will lead to failure. Organizations need to prioritize, collaborate, and think long term.”
4. Take control
Women tend only to apply for jobs that they feel they are a 100% match; men do so even when they meet no more than 60% of the requirements. Similarly, men tend to be promoted more often than women simply because they speak up and ask for a promotion.
Women need to take responsibility for themselves and for their own careers. Women need to apply for jobs with confidence, even when they don’t have 100% of the requirements. They also need to speak up and ask for a promotion.
Kevin O’Marah, Chief Content Officer at SCM World, sums up the issue of the supply chain gender gap nicely: “Women in supply chain are too few, and their path to the top is at least partially blocked. Yet we all seem to think they bring something to the party that will make it better. The time to break this problem down is now.”
by Jennifer Hart Yim | May 21, 2015 | Blog, Strategy, Supply Chain
This article is part of a series of articles written by MBA students and graduates from the University of New Hampshire Peter T. Paul College of Business and Economics.
Lindsey Marley completed dual undergraduate degrees in Business and History at Southern New Hampshire University. She is in her final semester of the MBA program at the University of New Hampshire. In her free time she enjoys traveling, reading, and spending time with her husband and their two dogs.
On November 24, 2012 there was a deadly fire at a garment manufacturing company which killed 112 people in Dhaka, Bangladesh. Another manufacturing facility in Dhaka collapsed on April 24, 2013 killing 142 people. The ready-made garment manufacturing industry in Bangladesh has grown to $19 billion dollars and is reported to be one of the most unsafe industries in the world. The consequences of corporations being lax in the sourcing of their products can have horrific consequences for people, the environment, and the company. Consumers in developed countries are demanding companies be more responsible in their sourcing as a result of the wealth of information found on the Internet about the production of goods and services.
Responsible Sourcing
The concept of responsible sourcing is in itself still being developed; however, responsible sourcing generally consists of two parts – people and the environment. There are several organizations which have provided guidelines to assist companies in developing their own code of conduct including:
One such industry-specific coalition, which was created in response to numerous tragedies such as those described above, is the Alliance for Bangladesh Worker Safety which was founded in 2013 by a group of North American apparel companies and retailers.
Alliance: A Global Response
The Alliance created a binding five-year agreement to improve worker safety among the largest importing companies of Bangladesh garments. Some of the most well-known participants include Limited, Carter’s Inc, Fruit of the Loom, Gap Inc, Kohl’s Department Stores, LL Bean, Macy’s, Target Corporation, and Wal-Mart Stores, Inc. The Alliance is accomplishing its mission through the use of a collective fund which was $42 million at the time of its creation.
The International Labour Organization has assisted the Alliance in the creation of an operational guide. The Alliance focuses on opening lines of communication between employees and management to ensure worker safety. Interviews with employees regarding existing safety practices and training are conducted and then safety discussions are coordinated between those employees and members of management. The Alliance also requires assessments be completed of garment manufacturing plants by independent engineers to certify worker safety and the structural soundness of facilities. After the initial evaluation and recommendations, the independent auditors return to confirm the changes previously discussed have been made as well as to assess the manufacturer’s ongoing compliance.
Had the Alliance been in place prior to the fire in 2012 the auditors would have found the illegally stored mounds of fabric and yarn, which accelerated the spread of flames, and required the materials to be stored in a more appropriate and safe manner. Another aspect of the fatal fire which could have been prevented was the allegation of factory managers directing employees to ignore the fire alarm. This wasted precious time for workers to exit the building safely. Ultimately, this lead many employees, trapped by the flames and smoke, to jump from upper floors to the rooftops of surrounding buildings or to their deaths. The tripartisan relationship that is created between the Alliance, employees, and management representatives is critical to ensure a clear, consistent message regarding basic employee safety. This communication helps to empower workers and could have encouraged them to challenge management’s direction to disregard the alarm when the fire broke out.
With regard to the building collapse of 2013, it was determined the four upper floors had been constructed illegally without permits. The three pronged scope of the Alliance (worker safety, fire safety, and structural soundness) again could have prevented this tragedy. In this situation, management at the garment manufacturing facility were aware of structural concerns before the collapse, but as in the case of the fire, ignored the risk and kept the factory open. Engineers working for the Alliance drill into factory walls to determine the structural integrity of the concrete and rebar used during construction to determine structural soundness.
Your Span of Control
These examples highlight the importance of maintaining a large span of control throughout your supply chain to ensure responsible sourcing. It is no small task to exercise this breadth of control for any company; however, companies can utilize the resources provided by the organizations listed above to develop their own requirements for responsible sourcing and supplier relationships. Companies can derive the maximum consumer exposure by enforcing responsible sourcing across their entire supply chain. It is also important to engrain this behavior into the culture particularly among employees who have the most interactions with the ultimate consumer.
Communicating to Your Customers
Consumer communication is the final piece of the responsible sourcing puzzle which brings together the voluntarily socially responsible company with their expecting consumer base. Responsible sourcing without informing consumers is a waste of good public relations. Many companies bury the information about their responsible sourcing efforts on the corporate website where consumers have to hunt for the information. Some coalitions and third party companies provide the insignia to compliant participants as a means of notifying consumers of their membership, but that is not always an option. If possible, a company’s commitment to responsible sourcing should be quickly and clearly communicated on its product packaging, in its digital footprint, and in the way it conducts and manages its supply chain.
The fast food giant Chipotle consistently communicates its commitment to responsibly sourced ingredients in its signage, website, commercials, and in its direct to consumer communications at the individual locations. The pervasive nature of the company’s responsible sourcing efforts has been strongly rewarded by its ever-growing customer base. In a time where consumers are switching brands to support socially responsible companies, it is imperative to keep a company’s responsible sourcing objectives, actions, and accomplishments at the forefront of consumer’s minds.
